Nikkei rises to 1-month high supported by financials

TOKYO, April 2 (Reuters) - Japan’s Nikkei rose to a one-month high on Tuesday morning as upbeat factory data from the United States boosted risk appetite, while financial stocks rose after U.S. yields gained.

The Nikkei share average rose 0.3 percent to 21,575.71 in midmorning trade, after opening at a one-month high of 21,744.64.

U.S. retail sales unexpectedly fell in February, but a rebound in factory activity in March and a strong increase in construction spending offered hope the economy was not slowing as sharply as previously feared.

“The data are mixed, but the market is looking at the brighter side as sentiment is already positive with China’s strong data the day before,” said Yutaka Miura, a senior technical analyst at Mizuho Securities.

But with the Nikkei moving closer to the next resistance level of 21,860, hit on March 5, the market is vulnerable to profit-taking, he added.